Countryside Properties half-year profit hit by Covid-19

Housebuilder and regeneration partner Countryside Properties reported a fall in half-year profit and revenue on Thursday as it pointed to lost completions and land sales in March due to the coronavirus pandemic.

In the six months ended 31 March, pre-tax profit fell to £43m from £70.3m in the same period a year ago, with revenue down 5% to £481.2m. Completions dipped 4% to 2,271 and the company had a total forward order book of £1.5bn, up 45%.

Countryside said lost completions and land sales in March impacted profit by around £29m and increased net debt by approximately £83m.

"The timing of the Covid-19 pandemic and the resulting restrictions on movement and uncertainty meant that our half year results were significantly impacted," it said. "Revenue and profit were both lower than they otherwise would have been as a significant number of private completions due for the end of March did not take place as planned and land sales were postponed."

The group estimated that around 184 completions, including 79 private completions, were lost, which alongside the lower levels of construction activity in March and the cancellation of five land sales by the counter-parties resulted in lost revenue of around £116m and associated lost operating profit of around £29m, on an adjusted basis.

Countryside closed its sales offices, construction sites, factories and regional offices on 25 March following government and Public Health England guidance.

Chief executive Iain McPherson said: "As we move into the second half of the year, we have cautiously restarted construction on around 80% of our sites albeit with significantly reduced build rates as we adjust to new ways of working. We welcome the revised guidance from Government allowing anyone looking to move home to be able to do so. Whilst the market outlook remains highly uncertain, our resilient mixed-tenure business model and strong forward order book benefit us both."